Shelter Manufacturing in Mexico FAQ

We can answer most of the typical questions that manufacturing executives have about initiating and maintaining production facilities in Mexico.

What is it that Tecma and its services do for my company?

If you are an executive of a manufacturing or service company that is looking at low-risk options for reducing costs, Tecma can partner with you to achieve this goal. Through Tecma’s shelter program in Mexico, you can set up your own business in that country. You bring your raw materials, machinery, and industry know-how. Tecma handles the intricacies of performing all the tasks beyond your core business functions.

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Is it easy to set up cost-effective and low-risk operations under Tecma’s Mexico shelter services?

When you sign a contract for the provision of shelter services in Mexico with Tecma, it’s no more complex than setting up manufacturing in a familiar local environment. In addition to the cost benefits that Mexico offers companies like yours, your risk is greatly reduced because the Tecma shelter service contract is under US laws.

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How much does it cost to set up your business operations using Tecma shelter services?

There are no fees that are related to starting up your operations in Mexico. The only expense that you will have in this phase of the project are those related to building improvements, moving raw materials and equipment to your facility, and hiring and training your staff. Once you are functional, Tecma is remunerated through the collection of its “shelter fee” which is a charge that is based on labor hours.

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Does the charging of Tecma’s shelter fee negate the cost-savings that Mexico offers?

No. Even with the inclusion of our shelter fee and rental space expense, we can help you to achieve production cost reductions of 50% or more. Our shelter fee covers the areas of Mexican finance and accounting, human resources, facilities management, environmental health and safety compliance, customs brokerage, information technology, and industrial cafeteria services. In addition to the shelter fee, Tecma clients are responsible for the square foot cost of their rental space.

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Does the cost quoted for labor in Mexico include fringe benefits?

Yes. In addition to the wage paid to a worker, labor costs include payroll taxes, government-provided health insurance, the Mexican unemployment fund, and workmen’s compensation fund. Direct labor in Mexico typically averages a fully loaded US $4.00 – $6.00 hourly for direct labor workers, while the cost for the same hour of labor in the US may average between US $16.00 -$18.00. When considered over the entirety of a budget year, this difference results in significant cost savings.

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What is the timeframe required to set up operations in Mexico under the shelter plan?

In most cases, you can be up and running in a 30-60-day period. Set-up time often depends upon the complexity of your operation and the time required to move machinery and equipment, as well as the extent of the modifications that are required to be made on your facility. For example, these modifications can include things such as the installation of special climate control equipment or the installation of an overhead crane.

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Can you provide me with information that is tailored to my specific situation?

Yes, we can. We are pleased to meet you on-line, in person, by telephone, or on-site in Mexico to discuss the details of your potential move. During this consultation, we will collect your company’s details and calculate the resources that will be required to conduct your operations in Mexico. Based on the information that we receive from you we will produce a detailed and personalized proposal. Tecma can typically produce this information within two to three days after this consultation.

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I’m not sure of the best place in Mexico to locate my operations. Can you help me do site selection?

Yes. We can guide you in your choice of the optimal locale in which to set-up operations. We’ll help you to maximize access to your suppliers and customers and we’ll direct you to the regions of Mexico that have the workers with skill sets that match your requirements. Although we can deliver our shelter services throughout the country, we are particularly well-positioned in Ciudad Juarez, Torreon, Tijuana, and Leon and Silao in the South-Central state of Guanajuato.

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Ismael Lara

Ismael Lara
Executive Manager of Business Development